Crypto is an unregulated and manipulated market - This cannot be honestly disputed
Based on my personal analysis of 1W BTCUSDT BITTREX, I think that the entire price movement from January 28th to present day can be precisely explained based on the Tom DeMark indicator.
I don't want to be a person who vandalizes Top Authors' Trading Ideas by posting my own charts in the comments section as a way to advertise my ego, so I will describe in words the Tom DeMark algorithm and why price action was predictable. This will be a long post.
First some back-story: The reason that we use candlesticks on charts is because of Steve Nison. He is the father of Candlestick Analysis. Steve Nison in his seminars teaches about "trend exhaustion". What he teaches is the work of Tom DeMark. What I'm about to explain is information which is known to the richest institutional traders in the world. There are large organizations who specialize in and only trade based on Tom DeMark's work. I begin:
Tom DeMark developed an algorithm, a specific set of rules which predictably identify points of TREND EXHAUSTION in charts of all time frames, across all markets. The algorithm and psychology is thus:
How To Identify Trend Exhaustion:
1) Identify a SETUP where 9 ***consecutive*** candles close higher/lower than the open/close 4 periods earlier. [MOMENTUM]
1) (Expect a 1-4 candle correction in the opposite direction of the momentum.) [CORRECTION]
2) This MOMENTUM creates a COUNTDOWN (TREND). After the 9th candle, identify 13 additional candles (they do not need to be sequential) whose close is higher/lower than the open/close 2 periods earlier. [TREND]
2) (The TREND which was created by the MOMENTUM of the SETUP has exhausted itself. Expect a correction in the opposite direction of the trend.) [EXHAUSTION]
TL;DR : This recent price action which we observed on the 1W chart was caused by a chain of events begun on May 14th 2018. Events:
1) Tom DeMark Sequential on May 14th 2018 identified a period beginning 9 consecutive days of bearish MOMENTUM.
2) This bearish MOMENTUM exhausted itself on July 09 2018 and culminated in a +34% price correction, ending 3 periods later on a Bearish Engulfing Pattern.
3) The Tom DeMark bearish COUNTDOWN began on August 06 2018 where for the first time price closed lower than the candle 2 periods earlier.
4) The Tom DeMark bearish COUNTDOWN culminated on the 13th close lower than the close 2 candles prior, on January 28th 2019. This completed the Tom DeMark SETUP+COUNTDOWN and indicates an end to the bullish trend which began on May 14th 2018.
5) What followed immediately thereafter was the +10% move which 3 periods later peaked at $4,200.
What should we expect now based on Tom Demark analysis? By my interpretation, I anticipate a period of 5 MONTHS of a bullish trend on 1W charts, completing a Tom DeMark 9-13-9, and expect a pullback at this point, April 01 2019.
Summary: I believe that this price action occurred in an unregulated and highly manipulated market but that based on Technical Analysis using the Tom DeMark methodology, this price action was anticipated and acted upon by BIG MONEY INSTITUTIONS and traders who specialize in this indicator. In a field which encompasses everything from Ascending Triangles to Heikin Ashi Candles, Gann Boxes to Fibonacci Retracements, Short Positions, Long Positions, Leverage, Market Fundamentals, Elliott Waves, and flying Bitcoin rainbow unicorns, there is no one trader who is a master of everything.
I WISH TO LEAVE ON THIS POINT:
Some of you may have found my analysis informational and will use this knowledge to further your trading education to increase your profitability as a trader. To those of you, you're welcome. I share freely from the kindness of my heart and sharing knowledge lightens my soul and makes the world a better place. To those of you who have not found my analysis informational, I do not think that you will berate me and inundate me with insults as I have not offended you. I ask you to heed my words: Dmitriy Lavrov is a kind and beautiful person who for years has shared his hard and costly knowledge with the TradingView community for free. He posts Trading Ideas because he wishes to help people improve their lives. I have the great honor to work with Dmitriy on the personal community which he is building and I can tell you first hand that he is a rare and trustworthy, kind and humble, honest and beautiful man. I ask you to please stop being negative and using his TradingView comments section as an emotional garbage can. He is a human and like all of us he has feelings which he must live with every day. It is a finger in the eye and a punch in the stomach to do something kind for people for free and to be insulted and injured for it. I ask you to please reflect on your poor behaviour and stop.
Thank you for your time.
I encourage you all to study Steve Nison and Dmitriy Lavrov to become expert traders. Farewell.
zerocashcool
Based on my personal analysis of 1W BTCUSDT BITTREX, I think that the entire price movement from January 28th to present day can be precisely explained based on the Tom DeMark indicator.
I don't want to be a person who vandalizes Top Authors' Trading Ideas by posting my own charts in the comments section as a way to advertise my ego, so I will describe in words the Tom DeMark algorithm and why price action was predictable. This will be a long post.
First some back-story: The reason that we use candlesticks on charts is because of Steve Nison. He is the father of Candlestick Analysis. Steve Nison in his seminars teaches about "trend exhaustion". What he teaches is the work of Tom DeMark. What I'm about to explain is information which is known to the richest institutional traders in the world. There are large organizations who specialize in and only trade based on Tom DeMark's work. I begin:
Tom DeMark developed an algorithm, a specific set of rules which predictably identify points of TREND EXHAUSTION in charts of all time frames, across all markets. The algorithm and psychology is thus:
How To Identify Trend Exhaustion:
1) Identify a SETUP where 9 ***consecutive*** candles close higher/lower than the open/close 4 periods earlier. [MOMENTUM]
1) (Expect a 1-4 candle correction in the opposite direction of the momentum.) [CORRECTION]
2) This MOMENTUM creates a COUNTDOWN (TREND). After the 9th candle, identify 13 additional candles (they do not need to be sequential) whose close is higher/lower than the open/close 2 periods earlier. [TREND]
2) (The TREND which was created by the MOMENTUM of the SETUP has exhausted itself. Expect a correction in the opposite direction of the trend.) [EXHAUSTION]
TL;DR : This recent price action which we observed on the 1W chart was caused by a chain of events begun on May 14th 2018. Events:
1) Tom DeMark Sequential on May 14th 2018 identified a period beginning 9 consecutive days of bearish MOMENTUM.
2) This bearish MOMENTUM exhausted itself on July 09 2018 and culminated in a +34% price correction, ending 3 periods later on a Bearish Engulfing Pattern.
3) The Tom DeMark bearish COUNTDOWN began on August 06 2018 where for the first time price closed lower than the candle 2 periods earlier.
4) The Tom DeMark bearish COUNTDOWN culminated on the 13th close lower than the close 2 candles prior, on January 28th 2019. This completed the Tom DeMark SETUP+COUNTDOWN and indicates an end to the bullish trend which began on May 14th 2018.
5) What followed immediately thereafter was the +10% move which 3 periods later peaked at $4,200.
What should we expect now based on Tom Demark analysis? By my interpretation, I anticipate a period of 5 MONTHS of a bullish trend on 1W charts, completing a Tom DeMark 9-13-9, and expect a pullback at this point, April 01 2019.
Summary: I believe that this price action occurred in an unregulated and highly manipulated market but that based on Technical Analysis using the Tom DeMark methodology, this price action was anticipated and acted upon by BIG MONEY INSTITUTIONS and traders who specialize in this indicator. In a field which encompasses everything from Ascending Triangles to Heikin Ashi Candles, Gann Boxes to Fibonacci Retracements, Short Positions, Long Positions, Leverage, Market Fundamentals, Elliott Waves, and flying Bitcoin rainbow unicorns, there is no one trader who is a master of everything.
I WISH TO LEAVE ON THIS POINT:
Some of you may have found my analysis informational and will use this knowledge to further your trading education to increase your profitability as a trader. To those of you, you're welcome. I share freely from the kindness of my heart and sharing knowledge lightens my soul and makes the world a better place. To those of you who have not found my analysis informational, I do not think that you will berate me and inundate me with insults as I have not offended you. I ask you to heed my words: Dmitriy Lavrov is a kind and beautiful person who for years has shared his hard and costly knowledge with the TradingView community for free. He posts Trading Ideas because he wishes to help people improve their lives. I have the great honor to work with Dmitriy on the personal community which he is building and I can tell you first hand that he is a rare and trustworthy, kind and humble, honest and beautiful man. I ask you to please stop being negative and using his TradingView comments section as an emotional garbage can. He is a human and like all of us he has feelings which he must live with every day. It is a finger in the eye and a punch in the stomach to do something kind for people for free and to be insulted and injured for it. I ask you to please reflect on your poor behaviour and stop.
Thank you for your time.
I encourage you all to study Steve Nison and Dmitriy Lavrov to become expert traders. Farewell.
zerocashcool
Comment:
Comment:
I meant to write:
What should we expect now based on Tom Demark analysis? By my interpretation, I anticipate a period of 5 WEEKS of a bullish trend on 1W charts, completing a Tom DeMark 9-13-9, and expect a pullback at this point, April 01 2019.
I accidentally wrote 5 MONTHS. :P
What should we expect now based on Tom Demark analysis? By my interpretation, I anticipate a period of 5 WEEKS of a bullish trend on 1W charts, completing a Tom DeMark 9-13-9, and expect a pullback at this point, April 01 2019.
I accidentally wrote 5 MONTHS. :P